LION E-Mobility AG Maintains BUY Rating Following Key Milestones

NuWays AG has reaffirmed its BUY recommendation for LION E-Mobility AG, setting a target price of EUR 7.00. This follows LION's transition into an automated battery pack manufacturer, marked by acquiring BMW's i3 battery pack production lines. This setup has the potential to produce up to 40,000 packs annually, with revenue expectations reaching €200m by 2028.

LION's FY23 report highlights a break-even EBITDA and €56m in sales. Notably, the T‹V S‹D Battery Testing JV, in which LION holds a 30% stake, saw a 41% rise in sales and contributed €660k to LION’s profits. The demand for battery testing continues to grow, projecting a 15% annual growth rate.

FY24 targets include sales between €60-65m and an EBITDA of €0.5-1m. The company plans to launch a new product portfolio in H2, featuring advanced battery packs, bolstered by its partnership with SVOLT. A promising project in the high-performance battery segment could further enhance mid-term sales.